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. Selling price variance - Premium Selling price variance - Regular Total selling price variance 2. Sales volume variance - Premium Sales volume variance - Regular Total sales volume variance 3. Sales quantity variances - Premium

. Selling price variance - Premium Selling price variance - Regular Total selling price variance 2. Sales volume variance - Premium Sales volume variance - Regular Total sales volume variance 3. Sales quantity variances - Premium

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Springwater Brewery has two main products: premium and regular ale. Its operating results and master budget for 20XX (000s omitted) follow: Barrels Sales Variable expenses Contribution margin Fixed expenses Operating income Operating Results of 20XX Premium Total Regular 630 210 $ 35,700 18,900 $ 16,800 12,000 $ 4,800 $78,750 53,550 $ 25,200 8,000 $ 17,200 840 $ 114,450 72,450 $ 42,000 20,000 $ 22,000 Master Budget for 20XX Regular 390 $ 50,700 33, 150 $ 17,550 8,000 $ 9,550 Premium 260 $ 41,600 23,400 $ 18,200 12,000 $ 6,200 Required: Calculate the following: 1. Selling price variances for the period for each product and for the firm. 2. Sales volume variances for the period for each product and for the firm. Total 650 $ 92,300 56,550 $ 35,750 20,000 $ 15,750 Pam Kuder, CEO, expected the total industry sales to be 1,300,000 barrels during the period. After the year, Mark Goldfeder, the controller, reported that the total sales for the industry were 1,400,000 barrels. 3. Sales quantity variances for each product and the firm. 4. Sales mix variances for the period for each product and for the firm. 5. The sum of the sales quantity variance and sales mix variance. Also, verify that this total equals the Jales volume variance. 6. Market size variance for the period. 7. Market share variance for the period. 8. The sum of the market size variance and market share variance. Also, verify that this total equals the sales quantity variance. (Enter your answers in thousands of dollars.)
Transcribed Image Text:Springwater Brewery has two main products: premium and regular ale. Its operating results and master budget for 20XX (000s omitted) follow: Barrels Sales Variable expenses Contribution margin Fixed expenses Operating income Operating Results of 20XX Premium Total Regular 630 210 $ 35,700 18,900 $ 16,800 12,000 $ 4,800 $78,750 53,550 $ 25,200 8,000 $ 17,200 840 $ 114,450 72,450 $ 42,000 20,000 $ 22,000 Master Budget for 20XX Regular 390 $ 50,700 33, 150 $ 17,550 8,000 $ 9,550 Premium 260 $ 41,600 23,400 $ 18,200 12,000 $ 6,200 Required: Calculate the following: 1. Selling price variances for the period for each product and for the firm. 2. Sales volume variances for the period for each product and for the firm. Total 650 $ 92,300 56,550 $ 35,750 20,000 $ 15,750 Pam Kuder, CEO, expected the total industry sales to be 1,300,000 barrels during the period. After the year, Mark Goldfeder, the controller, reported that the total sales for the industry were 1,400,000 barrels. 3. Sales quantity variances for each product and the firm. 4. Sales mix variances for the period for each product and for the firm. 5. The sum of the sales quantity variance and sales mix variance. Also, verify that this total equals the Jales volume variance. 6. Market size variance for the period. 7. Market share variance for the period. 8. The sum of the market size variance and market share variance. Also, verify that this total equals the sales quantity variance. (Enter your answers in thousands of dollars.)
(Enter your answers in thousands of dollars.) 1. Selling price variance - Premium Selling price variance - Regular Total selling price variance 2. Sales volume variance - Premium Sales volume variance - Regular Total sales volume variance 3. Sales quantity variances - Premium Sales quantity variances - Regular Total sales quantity variance 4. Sales mix variance - Premium Sales mix variance - Regular Total sales mix variance. 5. Sales volume variance 6. Market size variance 7. Market share variance 8. Sales quantity variance
Transcribed Image Text:(Enter your answers in thousands of dollars.) 1. Selling price variance - Premium Selling price variance - Regular Total selling price variance 2. Sales volume variance - Premium Sales volume variance - Regular Total sales volume variance 3. Sales quantity variances - Premium Sales quantity variances - Regular Total sales quantity variance 4. Sales mix variance - Premium Sales mix variance - Regular Total sales mix variance. 5. Sales volume variance 6. Market size variance 7. Market share variance 8. Sales quantity variance
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